Investor Channel is the communication channel between Pirelli and the financial community. Analysts, shareholders and web users can use the channel for direct dialogue with the Group. The blog is moderated by Pirelli Investor Relations.
International stock markets experienced a general recovery ( Milan +3.8%, London +2.9%, Frankfurt +7.4%, Paris +1.9%) during the week from 12 September to 16 September. Markets were also backed by the news that main Central Banks (BCE, Fed, BoE, BoJ, SNB) will join efforts in order to solve the liquidity issues some banks are facing.
It was a positive week for the Auto & Parts secor as well: the index gained +2.5%. At the Frankfurt motor show car makers underlined the absence up tp now of any sign of demand slowdown. The industry eventually will be able to face any change in the demand trend, thanks to a greater flexibility than during the past.
Pirelli closed the week at €5.81 (+14.7%) with 6.5 mln of shares traded on average, outperforming its peers (Michelin +7.4%, Continental +10.3%, Nokian +4.1%).
In Morgan Stanley’s opinion Pirelli is the tyre top pick (Overweight at 7.5€). The broker reviewed 2012 estimates including a global growth slowdown. However, according to the broker’s view, Pirelli will outperform the market thanks to the exposure to Emerging Marktes and the strong focus on premium.
The mean consensus TP is 8.45€ with BUY recommendations from 88% of brokers.